COAC Draft IPR Recommendations Include Detention and Seizure Linkage; Next Blockchain Test Set for September
CBP should provide more information through ACE to importers about detention and seizures involving intellectual property rights, the Commercial Customs Operations Advisory Committee IPR Working Group said in draft recommendations released ahead of the Aug. 21 meeting (see 1908160030). "There needs to be a linkage between the detention outcome and the subsequent seizure determinations," the working group said. "Currently, seizure notices do not refer or tie to detentions. There should be the ability to connect and trace detentions to seizures. As a short-term solution, the CBP Centers of Excellence & Expertise should work with their Partnership accounts to share this information."
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Also recommended is that CBP "include the actual supplier of the merchandise on the Fines Penalties & Forfeitures (FP&F) notice relating to transactions involving Third Party Marketplaces so a rights holder can determine if a product in question is being sold by a legitimate supplier in the eCommerce supply chain." Such notices don't currently include the actual supplier, the working group said. The agency should also improve the intelligence sharing with industry related to violations, something that was also recommended by the COAC to reduce trade in counterfeit goods (see 1908070022).
The working group also suggested that CBP improve the eRecordation system used by CBP to help keep track of trademarks and copyrights. The system should be updated to allow for adding "information electronically on specific products, such as adding new licensees or deleting former licensees, in a secure mode," it said. Electronic renewal prompts and the ability for more interaction with rights holders would also "assist customs officers in identifying legitimate merchandise."
Meanwhile, the next test of blockchain technology involving IPR is "anticipated to occur September 2019" and will be followed by an assessment, CBP said in its issue paper on emerging technologies. Specifically, the IPR test "will assess the agency’s ability to facilitate shipments by aligning right’s holders and licensee(s) to the entry for an improved importation experience," the agency said. CBP said it has also started discussions with the trade and the Department of Homeland Security Science and Technology Directorate about future tests. Previously discussed potential tests include tracking foreign oil shipments through pipelines (see 1903200020).
CBP also said it would be adding a new COAC One U.S. government (1USG) Working Group. The group met once in July and some planned initiatives include "identifying gaps in trade automation, data utilization and process management, as well as policy and regulatory obstacles, and determining steps to overcome them," CBP said in an issue paper. Also planned for the group is "providing industry perspective to inform the proposed Global Business Identifier (GBI) pilot and eventual implementation." CBP has said it hopes to replace the manufacturer ID identification system currently in use (see 1808150076).
Another report from the Northern Triangle Working Group recommended new legislation to help promote trade with Central American countries. Incentives should be given to U.S. companies for trading with the Northern Triangle, the report said, by improving “opportunities particularly in textiles/apparel and agriculture trade.” The working group members suggested Congress pass a Northern Triangle Trade and Job Promotion Act that would temporarily provide reduced tariff rates and a “2 for 1 earned import allowance program” where certain imports using third-party yarn and fabric could enter the U.S. duty-free. Working group members also suggested introducing more “liberal rules for the use of synthetics” in apparel products to spur regional production to compete with Asia. The legislation could also “address the underutilization of [Tariff Preference Levels] agricultural quotas in the region” but should not “disenfranchise U.S. or other business interests that have relied on the rules currently in place.”